A forest growers’ product levy begins on January 1 in New Zealand, in a bid to boost the forestry sector’s fortunes through research and development, biosecurity, marketing, industry training and education. Sources: Otago Daily Times, Voxy NZ
Associate Minister for Primary Industries Jo Goodhew said the Government agreed to make the new levy order following a successful forest owners’ referendum in March this year.
“This is the first levy order in the forestry sector. Other sectors such as meat and horticulture have had similar levies for over a decade, and they have brought greater cohesion and co-ordination in those industries,” Goodhew said in a statement.
Overseen by the Forest Growers Levy Trust, the levy will be reviewed by referendum in six years.
The tax deductable levy rate for the first year is NZ27c a tonne, increasing to NZ30c during the following five years.
At NZ30c for 30-year-old radiata, the levy would average out at NZ$5 per hectare for each year of growth.
“The levy per tonne is only small, but when it is multipled across the millions of logs our growers produce each year, we will be able to fund work that directly benefits all growers and indirectly, all New Zealanders,” said Forest Growers Levy Trust chair Geoff Thompson.
Products to be levied include logs, posts, poles, forest waste, binwood, hog fuel and woodchip, exported or processed in New Zealand, but does not apply to bark, Christmas trees or domestic firewood.
Farm Forestry Association president Ian Jackson said the development of the levy concept has resulted in an unprecedented level of co-operation between large and small growers.
“We’ve always been at the table, but having an elected levy trust board, where all small growers will be represented as of right, cements the relationship. Importantly it means all tree growers will make a financial contribution at harvest and have the opportunity to be involved in the governance of the industry.”
More than NZ$6.5 million will be raised during the first year, with a budget of NZ$3 million for research priorities and the balance used to fund activities, including health, safety and education, promotion and forest health surveillance.
